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DBK / DEPB BENEFITS FOR SUPPLIES TO SEZ, PYT RECD. IN INR

Murai Majhi (Service) (55 Points)

07 March 2009

Dear Sir, We have supplied to one SEZ after 10.02.2006 without charging ED / ST, and received payment in INR. We have not taken any advance license for the supplies. Now we want to claim DBK / DEPB for the same. Please guide us, can we claim the same. If so, what document we require to claim the benefit and time frame to claim.

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14 Replies

K. MURALI (GENERAL MANAGER - LOGISTICS) (31 Points)
Replied 11 March 2009

Originally posted by :Murai Majhi
"	Dear Sir, We have supplied to one SEZ after 10.02.2006 without charging ED / ST, and received payment in INR. We have not taken any advance license for the supplies. Now we want to claim DBK / DEPB for the same. Please guide us, can we claim the same. If so, what document we require to claim the benefit and time frame to claim.	"

Dear Murai:

As you have supplied material to SEZ, you have to claim the benefit from SEZ authorities. Firstly, check whether your customer has filed the Bill of Exports with SEZ authorities. Also, gothrough SEZ Rules 2006 and also Exim Policy for claiming respective benefits.

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Murai Majhi (Service) (55 Points)
Replied 11 March 2009

If bill of export is not available, what is the procedure to claim the benefit. Can any other documents will solve the purpose ??

K. MURALI (GENERAL MANAGER - LOGISTICS) (31 Points)
Replied 11 March 2009

Originally posted by :Murai Majhi
"	If bill of export is not available, what is the procedure to claim the benefit. Can any other documents will solve the purpose ??	"

Kindly refer the Chp. 4 of Exim Policy and Procedure. Also. Chap. IV -
SEZ Rules 2006 - para 24 and 25. It is difficult to answer to your question as from the above it is not very detail. Suggest consult the officers at JDGFT/SEZ please.

Murai Majhi (Service) (55 Points)
Replied 13 March 2009

Bill of export is not filed by the customer before the SEZ authority, so what should we do right now to claim dbk/depb ?

K. MURALI (GENERAL MANAGER - LOGISTICS) (31 Points)
Replied 13 March 2009

Originally posted by :Murai Majhi
"	Bill of export is not filed by the customer before the SEZ authority, so what should we do right now to claim dbk/depb ?	"

I do not think any possiblity of getting the benefit.... kindly contact the respective authorities for any possibility please.

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Murai Majhi (Service) (55 Points)
Replied 16 March 2009

WHY ? Bcoz : DGFT Notification No. 42 dated 18/9/08, permitting DEPB benefits for supply of goods from DTA to SEZ Developers/Codevelopers against Indian rupee In addition, the exporter shall also be entitled for DEPB benefit in case payment is made in Indian Rupees by SEZ Developer / Co-Developer for supplies received w.e.f 10.2.2006.” The 1st sub-paragraph of paragraph 4.3.1 stands amended as follows:- “An exporter may apply for credit, at specified percentage of FOB value of exports, made in freely convertible currency. In case of supply by a DTA Unit to a SEZ Unit /SEZ Developer / Co-Developer, an exporter may apply for credit for exports made in freely convertible currency or payment made from foreign currency account of SEZ Unit / SEZ Developer /Co-Developer. Please guide.

dharmesh shah (manager) (28 Points)
Replied 06 June 2009

The supply to SEZ is not considered as export under incentive unless Bill of export is filed . It is deemed to be Exports under free s/bill in case of supply under ARE1.

Murai Majhi (Service) (55 Points)
Replied 06 June 2009

My query is whether we can claim DBK from JDGFT in case we have received payment in INR for supplies to SEZ, where bill of export is not filed ?

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 08 June 2009

That is an important issue raised by Majhi.

Supply to SEZ is governed by SEZ Act and in that sense DGFT circular has no role to play. Under SEZ Act, such supply will not DEPB/Drawback benefits under SEZ Rules.

However, can such supply to SEZ be treated as "deemed export" under Foreign Trade Policy? If yes, Majhi has a case.

sanjay thapliyal (sr.accounts executive) (21 Points)
Replied 27 July 2010

We are a SEZ Dealer in KANDLA, Gujarat. we have purchase material thru ARE-1. We have submit the bill of export copy to custom & authenticated by custom. now which copy we have to return back to vendor. DEPB banefit will take by vendor.

kindly let me know.

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RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 28 July 2010

FOR SUPPLIES FROM DTA, BENEFIT OF DEPB / DFRC/ADVANCE LICENSE ELIGIBLE AS PER FTP 2009-2014 EP COPY, DEPB COPY CUSTOM AUTHINTICATED INVOCE, BILL OF LADING AND BRC IS MANDATORY SUBMIT IN CONCERNED REGIONAL LICENSING AUTHORITY.

REGARDS